Electricity Networks Association chief executive Alan Jenkins says the "woeful performance of generators this year" needs investigating, particularly when the government-owned trio of Meridian Energy, Mighty River Power and Genesis Power has recently signalled either further price rises to pay for new generation or announced significantly improved profits.

"Before there is any more talk of increasing prices, the government needs to stop and take a close look at what its generating companies are doing. The evidence that the wrong signals are coming through the energy market certainly suggests there is a prima facie case for change," added ENA chairman Warren Moyes.

Genesis yesterday announced a 27% increase in net profit to $NZ61.1 million while last week Mighty River Power announced a $NZ113 million net profit, more than twice the previous year's $NZ47 million.

Meridian Energy's net profit for the half-year to December was $NZ83 million, almost equalling the June 2002 full year result of $NZ84 million, and it last week signalled the need for more price rises to pay for future increases in demand.

Moyes said another example was the winter power crisis which revealed generators were not ready for a drought and the inadequacy of their contingency plans, such as having insufficient coal stockpiles.

Also Meridian last week admitted to a Parliamentary select committee that it had run its hydro stations last March-April, months before it should have, because it incorrectly assumed Genesis was running its thermal power stations at full capacity.

"The current drive to raise prices to pay for possible future investment is like a manufacturer with a booming business lifting prices to pay for a new machine that will bring in even more profits. Even the oil companies at least lower retail prices when their supply costs fall," Moyes concluded.